The Ministry of Finance (Minfin) reported that 79% of the resources allocated to the temporary subsidy have been executed to fuels and maintained that the measure met its objective of mitigating the impact of the international increase in oil prices, preserving economic activity and protecting employment.
Finance Minister Jonathan Menkos explained that the program was implemented during the period of greatest pressure on international crude oil prices and that, on average, The State allocated Q197.5 million per week to finance the benefit. He added that this policy contributed to sustaining economic growth expectations, which the Bank of Guatemala currently projects at 4.1% for this year.
In total, the accumulated support amounts to Q1,580.2 million, of the Q2 billion approved for application since last May 1. According to data presented by the Ministry of Public Finance, the first week of application of the subsidy recorded an expense of Q175.5 million.
The largest disbursement occurred between May 4 and 10, when Q215 million were paid to importers. The most recent week, from July 15 to 21, closed with Q185.8 million, indicated the Minfin authorities.
It depends on the MEM
According to the official, international projections point to a gradual decrease in the price of oil, with estimates of US$70.44 per barrel for August 2026 and US$66.41 for December 2027. In the opinion of the Minfin, this behavior would allow economic activity to be maintained without the need to prolong the subsidy.
According to Menkos, The completion of the temporary program will depend on the Ministry of Energy and Mines (MEM), who is assigned to execute the benefit, which was established for July 31. “It will be the MEM that will have to decide the date on which the subsidy will end,” said the official.
Temporary measure
The subsidy was approved by Congress in April 2026 as an emergency measure to cushion the effect of the international increase in fuel prices on homes and productive activities. The support established a discount of Q8 per gallon for diesel and Q5 per gallon for premium and regular gasoline, with an initial validity of three months.
Since it began to be applied, the Ministry of Energy and Mines (MEM) has made weekly payments to distribution companies to transfer the benefit to the final price that consumers pay at service stations. While the authorities evaluated their behavior and the rate of use of the available funds.
During the validity of the subsidy, the MEM also warned that, if the allocated resources were insufficient or international market conditions changed, targeting mechanisms or an eventual extension could be evaluated. However, as international oil prices began to moderate, The Government indicated that it would analyze the continuity of the program based on the evolution of the market and the fiscal cost of maintaining support.